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2018-05-17 10:33:04

COST

Costco

$200.72

1.99 (1.00%)

, ALGN

Align Technology

$291.03

3.17 (1.10%)

…10:33

05/17/18

05/17

10:33

05/17/18

10:33

On The Fly: Top five analyst initiations

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Costco (COST) initiated with a Buy at Loop Capital. 2. Align Technology (ALGN) initiated with an Outperform at Evercore ISI. 3. Baxter (BAX) assumed with an Overweight at Piper Jaffray. 4. Comtech (CMTL) initiated with a Neutral at Citi. 5. Helius Medical (HSDT) initiated with a Buy at BTIG. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.

Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Costco (COST) upgraded to Outperform from Market Perform at Wells Fargo with analyst Edward Kelly saying he expects Costco to "sustain strong comp momentum" despite difficult comparisons, deliver improved membership trends, navigate rising retail cost pressures, and beat consensus expectations. 2. Boston Beer (SAM) upgraded to Neutral from Sell at Goldman Sachs. 3. Ulta Beauty (ULTA) upgraded to Buy from Neutral at Guggenheim with analyst Steven Forbes saying he believes Ulta's industry-leading position and secular growth potential is undervalued with shares trading at 10x 2019 EBITDA. 4. Nielsen (NLSN) upgraded to Outperform from Market Perform at BMO Capital with analyst Daniel Salmon saying the heightened regulation on open internet platforms is a positive for a company involved with measurement and verification of data, which could increase demand for its products. 5. C.H. Robinson (CHRW) upgraded to Buy from Neutral at UBS with analyst Thomas Wadewitz saying trends in the first quarter are very favorable, which points to strong Q1 results for the company. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

05/03/18

UBSW

05/03/18NO CHANGETarget $215UBSWBuy

Costco shares remain compelling, says UBS

UBS analyst Michael Lasser met with Costco (COST) management, who noted their prices are well below Amazon's (AMZN) and at an even steeper discount to Whole Foods. He said Costco's model continues to stand on its own and he believes the shares are compelling at current levels. Lasser reiterated his Buy rating and $215 price target on Costco shares.

05/16/18

LOOP

05/16/18INITIATIONTarget $224LOOPBuy

Costco initiated with a Buy at Loop Capital

Loop Capital analyst Laura Champine initiated Costco with a Buy rating and a price target of $224, saying she has been a fan of its business model for some time. The analyst notes that Costco's "focus on e-commerce is accelerating its SSS growth rate", which she believes is likely to prove sustainable. Champine adds that the international market growth could remain even more profitable, and she is looking forward to Costco's warehouse club launch in China next year.

04/16/18

WELS

04/16/18UPGRADETarget $220WELSOutperform

Costco upgraded to Outperform from Market Perform at Wells Fargo

Wells Fargo analyst Edward Kelly upgraded Costco Wholesale to Outperform and raised his price target for the shares to $220 from $195. The analyst expects Costco to "sustain strong comp momentum" despite difficult comparisons, deliver improved membership trends, navigate rising retail cost pressures, and beat consensus expectations. The stock "looks to be on the cusp of its next leg up," Kelly tells investors in a research note. The analyst notes that while the current valuation is "high," it remains "well below peak levels."

Stifel analyst Jonathan Block, in a note to investors titled "Don't Believe the Hype: Few Surprises at AAO; Positive for Align," said the biggest takeaway from the American Association of Orthodontists meeting should be the commitment seen to digital treatment plans and moving teeth with clear aligners. Many may be focused on competition at the meeting, but he views it as benign relative to expectations, Block tells investors. The analyst, who still believes Align is the best way to capitalize on the industry trend toward clear aligner therapy, maintains a Buy rating on the shares.

Piper Jaffray analyst Matt O'Brien notes that at the large American Association of Orthodontists meeting, several large dental providers launched clear aligners to compete with Align Technology (ALGN) in the U.S. While he cautions that he is unable to corroborate claims independently, the analyst says that 3M (MMM), Henry Schein (HSIC) and Dentsply Sirona (XRAY) launched systems at the show and several smaller companies did as well. Overall, these introductions were very much expected and O'Brien is still skeptical about their impact on Align in the coming quarters. However, he expects this issue to weigh on the stock for a while until evidence that it is or is not affecting financial results materializes. The analyst reiterates an Overweight rating and $300 price target on Align's shares.

05/07/18

WBLR

05/07/18NO CHANGEWBLROutperform

William Blair says new competition does not change outlook on Align

There were a number of new product introductions this weekend at the American Association of Orthodontists Conference that will compete with Align Technology's (ALGN) Invisalign, William Blair analyst John Kreger tells investors in a research note. These include products from 3M (MMM) and Henry Schein (HSIC), as well as Dentsply Sirona's (XRAY) SureSmile offering, the analyst adds. He views the product offerings as largely in line with expectations, noting that his fundamental outlook on Align has not changed. Investors were well aware of looming competition, specifically from 3M, and the capabilities of the products introduced at the show were largely in line with expectations, Kreger contends. He continues to expect that clear aligners will take share from wires and brackets and maintains an Outperform rating on Align Technology.

BAXBaxter

$70.74

(0.00%)

05/17/18

PIPR

05/17/18INITIATIONTarget $77PIPROverweight

Baxter assumed with an Overweight at Piper Jaffray

Piper Jaffray analyst Matt O'Brien assumed coverage of Baxter International with an Overweight rating and $77 price target. Management has done an "excellent job" in quickly turning the company around, O'Brien tells investors in a research note. He believes there is further gross margin expansion available to push earnings higher and that the company's "clean" balance sheet should provide opportunity to do an accretive deal.

05/14/18

ARGS

05/14/18NO CHANGEARGSHold

Baxter pullback would warrant a potential upgrade, says Argus

Argus analyst John Eade kept his Hold rating on Baxter after the company's Q1 earnings beat and raised FY18 outlook, saying he would consider an upgrade if the stock price pulled back to the mid-$60's range. The analyst notes that Baxter has "substantially improved profitability in recent quarters" even as it continues to rely on M&A as a source of revenue and margin growth. Eade adds that while the company's Renal and Hospital Products segments are mature businesses, the company's balance sheet is clean, and the management's recent dividend raise is indicative of its confidence in Baxter's prospects.

02/02/18

COWN

02/02/18NO CHANGETarget $78COWNMarket Perform

Baxter guidance reaction unwarranted, says Cowen

Cowen analyst Joshua Jennings noted Baxter's Q2 guidance implied a headwind to operating margins and the shares sold off. The analyst believes the selloff was an overreaction and unwarranted, though, as he believes the guidance could be conservative and it will not disrupt the company's multiyear margin progress. Jennings maintained his Market Perform rating and raised his price target to $78 from $68 on Baxter shares.

02/20/18

DBAB

02/20/18UPGRADETarget $80DBABBuy

Baxter upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank analyst Kristen Stewart upgraded Baxter International to Buy and raised her price target for the shares to $80 from $50. The analyst expects management to execute well and she views the company's 2018 guidance as achievable, if not conservative. She sees the May analyst day as an upcoming catalyst and believes the stock deserves a premium valuation.

CMTLComtech

$30.81

-0.45 (-1.44%)

12/08/17

BMOC

12/08/17NO CHANGETarget $26BMOCOutperform

Comtech price target raised to $26 from $21 at BMO Capital

BMO Capital analyst Tim Long raised his price target on Comtech to $26 after a Q1 earnings beat and FY18 guidance raise. Long says that while government business was still in decline, revenues came in above consensus and backlog was strong. The analyst expects that segment to recover in the second half of next year, with both Government and Commercial sides of the company "seeing significant contract activity". Long keeps his Outperform rating on Comtech.

09/29/17

NBLE

09/29/17NO CHANGENBLE

Comtech weakness creates buying opportunity, says Noble Financial

Noble Financial analyst Mark Jordan says that Comtech's Q4 results were "positive." The analyst says that the company's profits and EBITDA are expected to increase significantly this year, excluding non-operating benefits and non-recurring IP payments from fiscal 2017. He thinks that the decline in the stock has created a buying opportunity, and he raised his price target on the name to $24 from $20.

05/17/18

SBSH

05/17/18INITIATIONTarget $33SBSHNeutral

Comtech initiated with a Neutral at Citi

Citi analyst Asiya Merchant started Comtech Telecommunications with a Neutral rating and $33 price target. End market visibility, pricing pressures from end customers and CEO succession plans remain a "viable concern," Merchant tells investors in a research note. Further, the analyst believes the market has already priced in the positives from recent strength in the company's backlog.

03/09/18

BMOC

03/09/18NO CHANGETarget $35BMOCOutperform

Comtech price target raised to $35 from $26 at BMO Capital

BMO Capital analyst Tim Long raised his price target on Comtech to $35 after the company's Q2 earnings beat and raised FY18 guidance. Long also points to Comtech's backlog reaching "near-record levels", which he sees as particularly impressive in light of management's conservative exclusion of unfunded contracts. The analyst keeps his Outperform rating, also anticipating Comtech's return to growth in the government business.

HSDTHelius Medical

$11.03

-0.06 (-0.54%)

05/17/18

BTIG

05/17/18INITIATIONTarget $14BTIGBuy

Helius Medical initiated with a Buy at BTIG

BTIG analyst Sean Lavin initiated Helius Medical with a Buy rating and a price target of $14, saying the company's offerings have the "potential to help people with traumatic brain injuries to regain normal function, balance, and the ability to walk." Lavin adds that Helius Medical's Portable Neuromodulation Stimulator is shown to produce "significant improvement in balance and function" in patients, who have "no other good options", expecting the company to target workers' comp, the military, and normal medical insurers. He also expects the investment story to result in positive public sentiment, driving adoption and reimbursement. The analyst does note some risks for the company, including its recently missed primary efficacy endpoint. which could prompt the FDA to ask for more data. as well as the company's impending capital needs.